Hugo Boss AG, the German fashion house whose artistic director has clothed Michelle Obama, lowered its sales and operating profit targets for the year due to a “substantial slowdown” in European demand.

Current market reports indicate that private equity firm Permira Advisers is aiming to sell its majority stake in Hugo Boss and re-opening talks to invest in Roberto Cavalli. What lessons can private equity firms learn from the company’s last major fashion investment?

Permira Advisers LLP is in talks with advisers about a potential sale of its remaining stake in German fashion house Hugo Boss AG seven years after taking control, according to three people with knowledge of the matter.

FRANKFURT, Germany — Hugo Boss AG, the German luxury clothing maker, reported second-quarter earnings that met analysts’ estimates as the company opened more of its own stores to showcase its goods and rely less on outside retailers.